Special Charges

The Company monitors global macroeconomic conditions on an ongoing basis and continues to assess opportunities for improved operational effectiveness and efficiency, as well as a better alignment of expenses with revenues. As a result of these assessments, the Company has undertaken various restructuring actions over the past several years. These actions are described below.

The following tables display the special charges taken for ongoing actions in fiscal 2016 and a roll-forward from October 31, 2015 to July 30, 2016 of the employee separation and exit cost accruals established related to these actions.



	Reduction of Operating Costs Action
Statements of Income	Fiscal 2016
Workforce reductions	$	13,684
Total Special Charges	$	13,684



Accrued Restructuring	Reduction of Operating Costs Action
Balance at October 31, 2015	$	5,877
Severance payments	(1,984		)
Effect of foreign currency on accrual	1
Balance at January 30, 2016	$	3,894
Second quarter 2016 special charge	13,684
Severance payments	(2,177		)
Effect of foreign currency on accrual	8
Balance at April 30, 2016	$	15,409
Severance payments	(1,541		)
Effect of foreign currency on accrual	(6		)
Balance at July 30, 2016	$	13,862

Reduction of Operating Costs Action

During the fiscal year ended November 1, 2014 (fiscal 2014), the Company recorded special charges of approximately $37.3 million. These special charges included $37.9 million for severance and fringe benefit costs in accordance with the Company's ongoing benefit plan or statutory requirements at foreign locations for 341 manufacturing, engineering and selling, marketing, general and administrative (SMG&A) employees; $0.5 million for lease obligation costs for facilities that the Company ceased using during the fourth quarter of fiscal 2014; and $0.4 million for the impairment of assets that have no future use located at closed facilities. The Company reversed approximately $1.4 million of its severance accrual related to charges taken in the fiscal year ended November 2, 2013 (fiscal 2013) primarily due to severance costs being lower than the Company's estimates. The Company terminated the employment of all employees associated with this action.

During the second quarter of fiscal 2016, the Company recorded special charges of approximately $13.7 million for severance and fringe benefit costs in accordance with the Company's ongoing benefit plan for 123 manufacturing, engineering and SMG&A employees. As of July 30, 2016, the Company still employed 90 of the 123 employees included in these cost reduction actions. These employees must continue to be employed by the Company until their employment is involuntarily terminated in order to receive the severance benefit.